Mineral royalties are the payment to the community for the purchase of the State's non-renewable resources, not a tax.

In Tasmania a sales and profit-based royalty applies to metallic and coal mines, while a production-based royalty is payable on non-metallic materials. The two-tiered metallic and coal royalty consists of an ad valorem percentage payable on net sales, and a formula-based percentage of profits.

Mineral royalties of $10.7m were paid in 2000-01, compared with $12.0m in 1999-2000. Contributing to this decrease was the closure in June 2000 of the Hellyer mine.